HRM Ch 10
A study on bonus versus actual pay raises showed that improving one's pay through merit increases by 1 percent would increase future performance by ____ percent. a. 5 b. 8 c. 10 d. 2
d. 2
Special benefits given to executive employees, such as assigned chauffeurs, country club memberships, and special vacation policies, are known as: a. assigned benefits. b. golden parachutes. c. executive rewards. d. perquisites.
d. perquisites.
Enterprise incentive plans include: a. sales incentives. b. the Scanlon Plan. c. the Rucker Plan. d. stock options.
d. stock options.
The standard time for producing one unit of work in a job paying $12.75 per hour was set at twelve minutes. The piece rate would be ____ per unit. a. $2.55 b. $1.95 c. $3.15 d. $2.95
a. $2.55
When employees receive a higher rate of pay for all of their work and production exceeds a standard level of output,they are working under the _____incentive plan. a. differential piece rate b. exception bonus rate c. standard piece rate d. individual rate pay
a. differential piece rate
Fixed pay is more flexible than variable pay.
F
Generally, an employee stock ownership plan is more likely to serve its intended purposes in privately held companies than in publicly held ones.
F
Historically, incentive plans have not been a major element of strategic compensation management.
F
Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.
F
Standard hour plans are based on specific production standards set for individual jobs.
F
The performance threshold in incentive plans is the name given to the amount awarded to an employer.
F
Under a straight piecework plan, if five minutes is the standard time to produce one unit and the employee's hourly rate is $7.50. The piece rate is $1.50 per unit.
F
Incentive plans can create an organizational environment of shared commitment since individuals contribute to organizational success.
T
Major advantages of piecework systems are that the wage payment is simple to compute, and an organization can predict labor costs with reasonable accuracy.
T
Meshing compensation and organizational objectives help employees assume ownership of their jobs, thereby improving their effort and overall job performance.
T
Piecework may be inappropriate where technology changes are frequent.
T
Under a differential piece rate, employees whose production performance exceeds the standard output receive a higher rate for all of their work than the rate paid to those who do not exceed the standard.
T
Under the Scanlon plan or Improshare program, psychological ownership can play a stronger role than financial ownership in employee performance.
T
_____ are a group of individuals who are over the age of 60 and are less likely to spend money on themselves. a. Boomers b. Traditionalists c. Members of generation Y d. Members of generation X
b. Traditionalists
Piecework is appropriate when: a. productivity standards are difficult to develop. b. a job is fairly standardized. c. quality is more important than quantity. d. technology changes are frequent.
b. a job is fairly standardized.
When setting performance measures for incentive systems, we can say that the best measures are those that: a. reduce administrative costs, determine rewards based only on quantity, and reward only exceptional employees. b. are quantitative, simple to understand, and show a clear relationship to improved performance. c. are qualitative, flexible, and create competition between employees. d. allow employers to "ratchet up" standards and base rewards on qualitative standards.
b. are quantitative, simple to understand, and show a clear relationship to improved performance.
When employees receive a certain rate for each unit produced, they are working under the _____ incentive plan. a. individual rate pay b. straight piecework c. differential piece rate d. standard piece rate
b. straight piecework
Which of the following is NOT an advantage of an incentive pay program? a. Incentives are a means to reward or attract top performers when salary budgets are low. b. Incentives focus employee efforts on specific performance targets. c. Incentives are a way to distribute success among those not responsible for producing that success. d. Incentives are a way to increase equity and justice in an organization.
c. Incentives are a way to distribute success among those not responsible for producing that success.
The straight commission plan is limited by all of the following disadvantages EXCEPT that: a. earnings tend to fluctuate widely between good and poor periods of business. b. salespeople are tempted to grant price concessions. c. salespeople will stress low-priced products. d. customer service after the sale is likely to be neglected.
c. salespeople will stress low-priced products.
An appropriate reward for a consumer service representative who worked long hours to fill a new customer's large order is a: a. piece rate. b. merit pay. c. spot bonus. d. differential piece rate.
c. spot bonus.